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Its happening too fast. The decreases have not had a chance to make it into the pipeline yet.

Large transport companies hedge their purchases at least a quarter or two in advance. That means that big fuel users are STILL paying higher prices because that was their contract.

The same with the frackers and what not. They, like farmers, are selling their “crop” in advance. Then they take insurance out in case there is a problem. Those derivatives are going to be the problem.

Its happening too fast. The decreases have not had a chance to make it into the pipeline yet. Large transport companies hedge their purchases at least a quarter or two in advance. That means that big fuel users are STILL paying higher prices because that was their contract. The same with the frackers and what not. They, like farmers, are selling their “crop” in advance. Then they take insurance out in case there is a problem. Those derivatives are going to be the problem.

If oil prices stay low for the next 3-4 months, then what do you see happening to the transport companies, the derivatives, and the markets?

262 posted on 01/18/2015 5:05:38 AM PST by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)